If anything, the shorting Bitcoinica offered was probably good for the economy, because it kept price rises in check.

+1 Bitcoinica gave the market the tools to make bets in all directions and through game theory eventually the only possible outcome is a relatively stable price. Not to worry thought because if no one else it looks like kronos will soon fill the void left by Bitcoinca.

If anything, the shorting Bitcoinica offered was probably good for the economy, because it kept price rises in check.

+1 Bitcoinica gave the market the tools to make bets in all directions and through game theory eventually the only possible outcome is a relatively stable price. Not to worry thought because if no one else it looks like kronos will soon fill the void left by Bitcoinca.

Yes, and Bitcoinica wasn't just a stabilizing factor on the market. It finally gave people something to hedge with. It's absolutely crucial that that is possible. Without it, people and companies dealing in a lot of BTC are exposing themselves to price swing risks. And without Bitcoinica, those swings are going to be bigger than they have been the last couple of months. Of course, for a business, such risks are simply unacceptable.

Have you noticed the lack of huge dips now that Bitcoinica is out of commission?

Personally I think the price history of BTC/USD would be roughly the same with or without Bitcoinica. People too easily blame some ghost in the room, when the main driver of market behavior is just the great collective opinion of subjective and emotional people.